[Federal Register Volume 72, Number 67 (Monday, April 9, 2007)]
[Rules and Regulations]
[Pages 17410-17413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6729]



[[Page 17410]]

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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-17

[FTR Amendment 2007-02; FTR Case 2007-302; Docket 2007-0002, Sequence 
2]
RIN 3090-AI35


Federal Travel Regulation; Relocation Income Tax (RIT) Allowance 
Tax Tables--2007 Update

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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SUMMARY: This rule updates the Federal, State, and Puerto Rico tax 
tables for calculating the relocation income tax (RIT) allowance, to 
reflect changes in Federal, State, and Puerto Rico income tax brackets 
and rates. The Federal, State, and Puerto Rico tax tables contained in 
this rule are for use in calculating the 2007 RIT allowance to be paid 
to relocating Federal employees.

DATES: Effective Date: This final rule is effective April 9, 2007.
    Applicability date: This final rule provides tax information for 
filing 2006 Federal and State income taxes.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room 
4035, GSA Building, Washington, DC 20405, telephone (202) 501-4755, for 
information pertaining to status or publication schedules. For 
clarification of content, contact Ed Davis, Office of Governmentwide 
Policy, Travel Management Policy (MTT), Washington, DC 20405, telephone 
(202) 208-7638. Please cite FTR Amendment 2007-02, FTR case 2007-302.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 5724b of Title 5, United States Code, provides for 
reimbursement of substantially all Federal, State, and local income 
taxes incurred by a transferred Federal employee on taxable moving 
expense reimbursements. Policies and procedures for the calculation and 
payment of the RIT allowance are contained in the Federal Travel 
Regulation (41 CFR part 302-17). GSA updates Federal, State, and Puerto 
Rico tax tables for calculating RIT allowance payments yearly to 
reflect changes in Federal, State, and Puerto Rico income tax brackets 
and rates.
    This amendment also provides a tax table necessary to compute the 
RIT allowance for employees who received reimbursement for relocation 
expenses in 2006.

B. Executive Order 12866

    This regulation is excepted from the definition of ``regulation'' 
or ``rule'' under Section 3(d)(3) of Executive Order 12866, Regulatory 
Planning and Review, dated September 30, 1993 and, therefore, was not 
subject to review under Section 6(b) of that Executive Order.

C. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment as per the exemption specified in 5 
U.S.C. 553(a)(2); therefore, the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., does not apply.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public that require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501 et seq.

E. Small Business Regulatory Enforcement Fairness Act

    This final rule is also exempt from Congressional review prescribed 
under 5 U.S.C. 801 since it relates solely to agency management and 
personnel.

List of Subjects in 41 CFR Part 302-17

    Government employees, Income taxes, Relocation allowances and 
entitlements, Transfers, Travel and transportation expenses.

    Dated: March 23, 2007.
Lurita Doan,
Administrator of General Services.

0
For the reasons set forth in the preamble, under 5 U.S.C. 5738, GSA 
amends 41 CFR part 302-17 as set forth below:

PART 302-17--RELOCATION INCOME TAX (RIT) ALLOWANCE

0
1. The authority citation for 41 CFR part 302-17 continues to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.

0
2. Revise Appendices A, B, C, and D to part 302-17 to read as follows:

Appendix A to Part 302-17--Federal Tax Tables for RIT Allowance

                                   Federal Marginal Tax Rates by Earned Income Level and Filing Status--Tax Year 2006
       [Use the following table to compute the RIT allowance for Federal taxes, as prescribed in Sec.   302-17.8(e)(1), on Year 1 marginal taxable
                                                   reimbursements received during calendar year 2006]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                        Marginal tax rate                            Single taxpayer      Head of household      Married filing        Married filing
-------------------------------------------------------------------------------------------------------------  jointly/qualifying        separately
                                                                                                                widows & widowers  ---------------------
                                                                              But not               But not  ----------------------
                             Percent                                 Over       over       Over       over                But not      Over     But not
                                                                                                                 Over       over                  over
--------------------------------------------------------------------------------------------------------------------------------------------------------
10..............................................................     $8,739    $16,560    $16,538    $27,374    $24,163    $38,534    $12,036    $19,194
15..............................................................     16,560     41,041     27,374     59,526     38,534     86,182     19,194     43,330
25..............................................................     41,041     88,541     59,526    128,605     86,182    154,786     43,330     79,441
28..............................................................     88,541    175,222    128,605    203,511    154,786    224,818     79,441    114,716
33..............................................................    175,222    360,212    203,511    375,305    224,818    374,173    114,716    188,184
35..............................................................    360,212  .........    375,305  .........    374,173  .........    188,184  .........
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Appendix B to Part 302-17--State Tax Tables for RIT Allowance

[[Page 17411]]



                         State Marginal Tax Rates by Earned Income Level--Tax Year 2006
 [Use the following table to compute the RIT allowance for State taxes, as prescribed in Sec.   302-17.8(e)(2),
on taxable reimbursements received during calendar year 2006. The rates on the first line for each State are for
  employees who are married and file jointly; if there is a second line for a State, it displays the rates for
  employees who file as single. For more additional information, such as State rates for other filing statuses,
  please see the 2007 State Tax Handbook, pp. 255-270, available from CCH Inc., http://tax.cchgroup.com/Books/default default.]
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   Marginal tax rates (stated in percents) for the earned income amounts specified in each column.\1\ \2\ \3\
-----------------------------------------------------------------------------------------------------------------
                                                                                                  $75,000 & over
             State (or District)               $20,000-$24,999  $25,000-$49,999  $50,000-$74,999        \4\
----------------------------------------------------------------------------------------------------------------
Alabama......................................            5.00             5.00             5.00            5.00
Alaska.......................................            0.00             0.00             0.00            0.00
Arizona......................................            3.04             3.04             3.55            3.55
    If single status, married filing                     3.04             3.55             4.48            4.48
     separately \5\..........................
Arkansas.....................................            6.00             7.00             7.00            7.00
California...................................            2.00             6.00             9.30            9.30
    If single status, married filing                     6.00             8.00             9.30            9.30
     separately \5\..........................
Colorado.....................................            4.63             4.63             4.63            4.63
Connecticut..................................            5.00             5.00             5.00            5.00
Delaware.....................................            5.20             5.55             5.95            5.95
District of Columbia.........................            7.00             7.00             8.70            8.70
Florida......................................            0.00             0.00             0.00            0.00
Georgia......................................            6.00             6.00             6.00            6.00
Hawaii.......................................            6.40             7.60             7.90            8.25
    If single status, married filing                     7.60             7.90             8.25            8.25
     separately \5\..........................
Idaho........................................            7.40             7.80             7.80            7.80
    If single status, married filing                     7.80             7.80             7.80            7.80
     separately \5\..........................
Illinois.....................................            3.00             3.00             3.00            3.00
Indiana......................................            3.40             3.40             3.40            3.40
Iowa.........................................            6.48             7.92             8.98            8.98
Kansas.......................................            6.25             6.45             6.45            6.45
Kentucky.....................................            5.80             5.80             5.80            6.00
Louisiana....................................            2.00             4.00             6.00            6.00
    If single status, married filing                     4.00             6.00             6.00            6.00
     separately \5\..........................
Maine........................................            7.00             8.50             8.50            8.50
    If single status, married filing                     8.50             8.50             8.50            8.50
     separately \5\..........................
Maryland.....................................            4.75             4.75             4.75            4.75
Massachusetts................................            5.30             5.30             5.30            5.30
Michigan.....................................            3.90             3.90             3.90            3.90
Minnesota....................................            5.35             7.05             7.05            7.05
    If single status, married filing                     7.05             7.05             7.85            7.85
     separately \5\..........................
Mississippi..................................            5.00             5.00             5.00            5.00
Missouri.....................................            6.00             6.00             6.00            6.00
Montana......................................            6.90             6.90             6.90            6.90
Nebraska.....................................            3.57             6.84             6.84            6.84
    If single status, married filing                     5.12             6.84             6.84            6.84
     separately \5\..........................
Nevada.......................................            0.00             0.00             0.00            0.00
New Hampshire................................            0.00             0.00             0.00            0.00
New Jersey...................................            1.75             1.75             3.50            5.525
    If single status, married filing                     1.75             5.525            5.525           6.370
     separately \5\..........................
New Mexico...................................            5.30             5.30             5.30            5.30
New York.....................................            5.25             6.85             6.85            6.85
    If single status, married filing                     6.85             6.85             6.85            6.85
     separately \5\..........................
North Carolina...............................            7.00             7.00             7.00            7.00
    If single status, married filing                     7.00             7.00             7.75            7.75
     separately \5\..........................
North Dakota.................................            2.10             2.10             3.92            3.92
    If single status, married filing                     2.10             3.92             4.34            4.34
     separately \5\..........................
Ohio.........................................            4.083            4.083            4.764           5.444
Oklahoma.....................................            6.25             6.25             6.25            6.25
Oregon.......................................            9.00             9.00             9.00            9.00
Pennsylvania.................................            3.07             3.07             3.07            3.07
Rhode Island \6\.............................            3.75             7.00             7.00            7.00
    If single status, married filing                     3.75             7.00             7.00            7.75
     separately \5\..........................
South Carolina...............................            7.00             7.00             7.00            7.00
South Dakota.................................            0.00             0.00             0.00            0.00
Tennessee....................................            0.00             0.00             0.00            0.00
Texas........................................            0.00             0.00             0.00            0.00
Utah.........................................            6.98             6.98             6.98            6.98
Vermont......................................            3.60             3.60             7.20            7.20
    If single status, married filing                     3.60             7.20             8.50            8.50
     separately \5\..........................
Virginia.....................................            5.75             5.75             5.75            5.75
Washington...................................            0.00             0.00             0.00            0.00
West Virginia................................            4.00             6.00             6.50            6.50
Wisconsin....................................            6.50             6.50             6.50            6.50

[[Page 17412]]

 
Wyoming......................................            0.00             0.00             0.00            0.00
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[The above table/column headings established by IRS.]
\1\ Earned income amounts that fall between the income brackets shown in this table (e.g., $24,999.45,
  $49,999.75) should be rounded to the nearest dollar to determine the marginal tax rate to be used in
  calculating the RIT allowance.
\2\ If the earned income amount is less than the lowest income bracket shown in this table, the employing agency
  shall establish an appropriate marginal tax rate as provided in Sec.   302-17.8(e)(2)(ii).
\3\ If two or more marginal tax rates of a State overlap an income bracket shown in this table, then the highest
  of the two or more State marginal tax rates is shown for that entire income bracket. For more specific
  information, see the 2007 State Tax Handbook, pp. 255-270, CCH, Inc., http://tax.cchgroup.com/Books/default.
\4\ This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please
  consult actual tax tables. See 2007 State Tax Handbook, pp. 255-270, CCH, Inc., http://tax.cchgroup.com/Books/default default.
\5\ This rate applies only to those individuals certifying that they will file under a single or married filing
  separately status within the states where they will pay income taxes.
\6\ The income tax rate for Rhode Island is 25 percent of Federal income tax rates, including capital gains
  rates and any another other special rates for other types of income. Rates shown as a percent of Federal
  income tax liability must be converted to a percent of income as provided in Sec.   302-17.8(e)(2)(iii).
  Effective for the 2006 tax year, tax payers may elect to compute income tax liability based on a graduated
  rate schedule or an alternative flat tax equal to 8%.

Appendix C to Part 302-17--Federal Tax Tables for RIT Allowance--Year 2

            Estimated Ranges of Wage and Salary Income Corresponding to Federal Statutory Marginal Income Tax Rates by Filing Status In 2007
   [The following table is to be used to determine the Federal marginal tax rate for Year 2 for computation of the RIT allowance as prescribed in Sec.
302-17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005,
                                                                        or 2006]
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                        Marginal tax rate                            Single taxpayer      Head of household      Married filing        Married filing
-------------------------------------------------------------------------------------------------------------  jointly/qualifying        separately
                                                                                                                widows & widowers  ---------------------
                                                                              But not               But not  ----------------------
                             Percent                                 Over       over       Over       over                But not      Over     But not
                                                                                                                 Over       over                  over
--------------------------------------------------------------------------------------------------------------------------------------------------------
10..............................................................     $9,287    $17,545    $18,060    $29,399    $26,173    $41,393    $14,049    $21,441
15..............................................................     17,545     43,394     29,399     62,576     41,393     91,201     21,441     45,388
25..............................................................     43,394     93,101     62,576    138,856     91,201    162,117     45,388     81,616
28..............................................................     93,101    183,867    138,856    216,022    162,117    233,656     81,616    119,660
33..............................................................    183,867    376,616    216,022    389,045    233,656    387,765    119,660    197,483
35..............................................................    376,616  .........    389,045  .........    387,765  .........    197,483  .........
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Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance

                      Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2006
    [Use the following table to compute the RIT allowance for Puerto Rico taxes, as prescribed in Sec.   302-
                  17.8(e)(4)(i), on taxable reimbursements received during calendar year 2006.]
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                                                  For married person living with  For married person living with
                                                    spouse and filing jointly,     spouse and filing separately
                                                  married person not living with -------------------------------
                Marginal tax rate                 spouse, single person, or head
                                                           of household
                                                 --------------------------------      Over        But not over
                                                       Over        But not over
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10..............................................          $2,000         $17,000          $1,000          $8,500
15..............................................          17,000          30,000           8,500          15,000
28..............................................          30,000          50,000          15,000          25,000
33..............................................          50,000  ..............          25,000  ..............
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Source: Individual Income Tax Return 2006--Long Form; Commonwealth of Puerto Rico, Department of the Treasury,
  P.O. Box 9022501, San Juan, PR 00902-2501; http://www.hacienda.gobierno.pr/planillas_y_formularios/formularios.html.


[[Page 17413]]

 [FR Doc. E7-6729 Filed 4-6-07; 8:45 am]
BILLING CODE 6820-14-P